News Release
Office of the Official Opposition
 

Voisey's Bay agreement has teeth, but government has no bite
February 27th, 2004

Kelvin Parsons, Opposition Critic for Mines and Energy and MHA for the District of Burgeo-Lapoile, said today that the Industrial Employment Benefits Agreement (IEBA) does indeed require the Voisey’s Bay Nickel Company Limited (VBNC) to give first consideration to local companies and the agreement states that contracts cannot be let outside the province if there are qualified local firms who can complete the work on a cost competitive basis.

"The legal opinions expressed to me as the former Minister of Justice are contrary to what Minister Byrne said yesterday in his press conference. It is not a case of the Opposition changing its mind on the deal, it is a case of a government not being prepared to enforce the provisions of the agreements," said Mr. Parsons.

Parsons was responding to comments made by Natural Resources Minister Ed Byrne relating to a portion of a steel fabrication contract that will be let outside of the province. VBNC claims that it cannot be completed in this province within the appropriate time frame.

"Section 4.2.1 requires VBNC to identify on a timely and ongoing basis supply opportunities that will be available for local companies. Apparently, VBNC is now saying that local companies cannot get the work done on time. The onus was on VBNC to advise local companies in a timely fashion that these opportunities would be available. If local companies do not have enough time to complete the work, the opportunity was not identified in a timely fashion by VBNC.

"It is obvious that VBNC has breached the agreement by not providing local companies with timely access to make a competitive bid. If this is the case, I ask the minister what he will do to remedy the situation? Minister Byrne says that this agreement has no teeth because it is a best efforts clause. It is submitted, government can take several actions, up to and including refusal to issue the mining lease, if VBNC does not live up to the agreements. Instead of Minister Byrne focusing on the reasons why we cannot secure local benefits, he should tell us what he intends to do to remedy the lost opportunity to the province and the breach of the agreement. The minister must immediately ensure that VBNC compensates the province for the shortfalls in contract work that should have accrued to this province.

"We need a government who is going to stand up to VBNC and ensure that the agreements are enforced. I hope this minister will recognize the seriousness of the contract breach and will work diligently to ensure it is remedied."

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477